New York tip laws (2026)
New York's minimum wage is $16.00 an hour upstate and $17.00 in New York City, Long Island and Westchester. Tipped food-service workers can be paid $10.70 cash upstate and $11.35 downstate. A state inflation off-ramp keeps those rates flat on January 1, 2027.
New York at a glance
Tip credit allowedNew York: $16.00 an hour minimum wage. Tipped staff can be paid $10.70 cash, with up to $5.30 counted from tips.
| State minimum wage | $16.00/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $10.70 | Plus up to $5.30 in tips = $16.00.[1] |
| Max tip credit | $5.30 | Counted from tips.[1] |
| Tip pooling | Allowed | Mandatory pools allowed.[1] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee.[1] |
| Card tip payout | Card tips are due by the next regular payday. | Employers can't wait for the card company to pay them first.[2] |
| Regional minimum wages | 1 region | Set by state law: $17.00 in New York City, Long Island and Westchester. See wages[1] |
Rates verified against the New York State Department of Labor, Division of Labor Standards on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)
02The yes/no sheet
Can you do this in New York?
In New York you can take a tip credit of up to $5.30 an hour, can require staff to join a tip pool and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes | Pay at least $10.70 cash and count up to $5.30 in tips. Tips must cover the gap.[1] |
| 02 | Make staff join a tip pool? | Yes | Allowed, as long as only eligible staff share.[1] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: has to give real, regular personal service to guests as a main duty, in eligible food-service work. Can't be the employer's agent.[1][3][4] |
| 04 | Include cooks and dishwashers? | No | Kitchen-only cooks and dishwashers can't join a New York food-service pool. Eligibility takes regular personal service to guests.[1] |
| 05 | Give managers or supervisors a share? | No | Employers and their agents can't keep workers' tips. The federal duties test also keeps supervisors out of pools.[1][3][4] |
| 06 | Let an owner keep any of the tips? | No | Employers and their agents can't keep workers' tips. The federal duties test also keeps supervisors out of pools.[1][3] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | Required shares have to be customary and reasonable. No fixed percentage cap.[1] |
| 08 | Take card processing fees out of tips? | Pro rata | Only the card fee on the tip itself, not on the food bill or general overhead.[1] |
| 09 | Hold card tips until payday? | Deadline | Card tips are due by the next regular payday. Employers can't wait for the card company to pay them first.[2] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[5][1][3] |
| 11 | Keep a mandatory service charge for the house? | Depends | Only if you clearly tell guests it doesn't go to staff.[1] |
| 12 | Pay tips on a payroll card? | Depends | With the worker's consent. Offer another way to get paid too.[6] |
03State vs federal
New York vs federal law
New York sets a stricter rule than federal law on 3 of the 10 rules below, starting with a $16.00 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | New York | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[3] | New York$16.00[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[3] | New York$10.70[1] | Stricter |
| Max tip creditHigher credit | Federal$5.12[3] | New York$5.30[1] | Higher credit |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[3] | New YorkFood-service status depends on duties and regular tips, not a monthly dollar amount. Other service workers need set average hourly tips.[7] | State rule |
| Managers in the poolState rule | FederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[3] | New YorkEmployers and their agents can't keep workers' tips. The federal duties test also keeps supervisors out of pools.[1][3][4] | State rule |
| Kitchen in the poolState rule | FederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[3] | New YorkKitchen-only cooks and dishwashers can't join a New York food-service pool. Eligibility takes regular personal service to guests.[1] | State rule |
| Card fees from tipsSame as federal | FederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[3] | New YorkTip's share of the fee only[1] | Same as federal |
| Card tip payoutState rule | FederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[3] | New YorkCard tips are due by the next regular payday. Employers can't wait for the card company to pay them first.[2] | State rule |
| Mandatory service chargesStricter | FederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[3] | New YorkStaff's money unless you tell guests otherwise[1] | Stricter |
| Overtime for tipped staffState rule | FederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[3] | New YorkAfter 40 hours, 1.5 times the full rate, minus the same tip credit. Spread-of-hours and call-in pay rules also apply.[1] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how New York fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in New York
In New York employers can pay tipped staff $10.70 an hour and count up to $5.30 in tips toward the $16.00 minimum. If tips fall short, the employer makes up the difference.[1]
One server, one slow 30-hour week in New York
A busy week with $159.00 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- Hospitality only. Written notice first, real weekly tips that cover the credit, daily side-work limits, and the employer covers any gap.[1]
- Who counts as tipped
- Food-service status depends on duties and regular tips, not a monthly dollar amount. Other service workers need set average hourly tips.[7]
- Overtime
- After 40 hours, 1.5 times the full rate, minus the same tip credit. Spread-of-hours and call-in pay rules also apply.[1]
- Side work and dual jobs
- No tip credit for the whole day once non-tipped work hits 2 hours or tops 20% of the shift, whichever comes first.[1]
Other rates
| Rate | Hourly |
|---|---|
| Tier New York City, Long Island and WestchesterFor work in NYC, Nassau, Suffolk or Westchester. This is a state regional rate, not a city law. Since .[8] | $17.00 |
| Tipped cash wage Food service: NYC, Long Island, WestchesterQualifying hospitality food-service workers. Maximum credit $5.65. Since .[7][8] | $11.35 |
| Tipped cash wage Service employees: remainderHospitality service workers outside food service. Maximum credit $2.70, and a tip-earnings test applies. Since .[7][8] | $13.30 |
| Tipped cash wage Service employees: NYC, Long Island, WestchesterHospitality service workers outside food service. Maximum credit $2.85, and a tip-earnings test applies. Since .[7][8] | $14.15 |
| Industry Fast foodRest of the state. Qualifying chain fast-food workers. No tip credit. Since .[1] | $16.00 |
| Industry Fast foodNYC, Nassau, Suffolk and Westchester. Qualifying chain fast-food workers. No tip credit. Since .[1][8] | $17.00 |
Scheduled increases
No statewide increase with a published amount is on file as of .
05Local rates
City and county minimum wages in New York
New York sets a higher regional minimum wage by state law: $17.00 in New York City, Long Island and Westchester. No city or county minimum wages are on file.[1]
06Tip pool
Who can be in the tip pool in New York
New York allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Depends | Has to give real, regular personal service to guests as a main duty, in eligible food-service work. Can't be the employer's agent.[1] |
| Bartender | Depends | Has to give real, regular personal service to guests as a main duty, in eligible food-service work. Can't be the employer's agent.[1] |
| Busser | Depends | Has to give real, regular personal service to guests as a main duty, in eligible food-service work. Can't be the employer's agent.[1] |
| Food runner | Depends | Has to give real, regular personal service to guests as a main duty, in eligible food-service work. Can't be the employer's agent.[1] |
| Host | Depends | Has to give real, regular personal service to guests as a main duty, in eligible food-service work. Can't be the employer's agent.[1] |
| Barback | Depends | Has to give real, regular personal service to guests as a main duty, in eligible food-service work. Can't be the employer's agent.[1] |
| Expo | Depends | Has to give real, regular personal service to guests as a main duty, in eligible food-service work. Can't be the employer's agent.[1] |
| Back of house | ||
| Cook | Not allowed | Kitchen-only work doesn't count as food service, so no pool share.[1] |
| Dishwasher | Not allowed | Kitchen-only work doesn't count as food service, so no pool share.[1] |
| Leadership | ||
| Shift lead | Depends | Can share if guest service is the main job. Light supervision is fine. Real control over other staff, or federal manager duties, rules it out.[1][4][3] |
| Manager or supervisor | Not allowed | Can't receive pooled tips under federal rules.[3] |
| Owner | Not allowed | Can't receive pooled tips under federal rules.[3] |
- Managers and supervisors
- Employers and their agents can't keep workers' tips. The federal duties test also keeps supervisors out of pools.[1][3][4]
- Owners
- Employers and their agents can't keep workers' tips. The federal duties test also keeps supervisors out of pools.[1][3]
- Back of house
- Kitchen-only cooks and dishwashers can't join a New York food-service pool. Eligibility takes regular personal service to guests.[1]
- Who sets the percentages
- The employer can set pool percentages, but required shares have to be customary and reasonable. Voluntary pools are fine too.[1]
- Cap on what a pool can take
- Required shares have to be customary and reasonable. No fixed percentage cap.[1]
- Pooling allowed
- Yes.[1]
07Put it to work
Setting up a tip pool in New York
Under New York rules, 6 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $268.29 | $250.00 | $211.78 |
| Jordan | $268.29 | $250.00 | $211.76 |
| Priya | $268.29 | $250.00 | $211.76 |
| Sam | $175.61 | $200.00 | $211.76 |
| Luis | $109.76 | $125.00 | $176.47 |
| Ava | $109.76 | $125.00 | $176.47 |
| Theo | Not in the pool. Kitchen-only work doesn't count as food service, so no pool share. | ||
| Kim | Not in the pool. Kitchen-only work doesn't count as food service, so no pool share. | ||
| Rafa | Not in the pool. Kitchen-only work doesn't count as food service, so no pool share. | ||
| Dana | Not in the pool. Can't receive pooled tips under federal rules. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet New York's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.
Ferry Tip Manager: support pool split by hours
Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.
Who it's for Full-service restaurants that tip out bussers, runners and bar backs
08Service charges
Service charges vs tips in New York
In New York a mandatory service charge is presumed to belong to staff unless the business clearly tells guests otherwise.
| Question | OptionalTip | MandatoryService charge |
|---|---|---|
| Who sets the amount | The guest | The business |
| Who it belongs to | The worker it was left for, or the pool | Staff, unless the business clearly tells guests otherwise.[1] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[3] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[9][10] |
| Guest notice | None needed | For banquet or package admin charges: the contract, menu and bill say it isn't a tip, in plain words, in at least 12-point type.[1] |
- Step 1Did the guest choose whether to pay it, and how much?YesIt's a tip. It belongs to staff.NoIt's a mandatory charge. Go to step 2.
- Step 2What does New York say?Staff own it unless disclosedStaff, unless the business clearly tells guests otherwise.[1]
- Step 3Check the cityNo city service charge rules on file for New York.
- Menu and receipt notice
- For banquet or package admin charges: the contract, menu and bill say it isn't a tip, in plain words, in at least 12-point type.[1]
- Large-party auto gratuities
- An automatic charge billed as a gratuity has to go fully to staff. A new label doesn't get around that.[1]
Local service charge rules
No local service charge rules on file for New York.
More on the difference: service charge vs tip.
Service charges
How an admin charge avoids being a tip
New York presumes extra charges are tips that go to staff. For banquets and packages, a charge only escapes that if it's disclosed the right way.[1]
- Disclosed in the contract or agreement, the menu and the bill
- Says it isn't a tip and won't be paid to staff
- Plain language, in type similar to the rest and at least 12 points
- A mixed charge spells out which part goes to staff
09Card tips
Card tips in New York: fees and payout timing
In New York only the tip's share of the card processing fee can come out of a card tip. Payout deadline: card tips are due by the next regular payday. Employers can't wait for the card company to pay them first.
Only the card fee on the tip itself, not on the food bill or general overhead.[1]
When card tips have to land
- TonightGuest adds a tip On the card, at the table.
- CloseShift is tallied The pool is split by your rules.
- DeadlineNew York rule Card tips are due by the next regular payday. Employers can't wait for the card company to pay them first.[2]
- Last dayFinal pay By the regular payday, whether the worker quits or is fired. Mailed if the worker asks.[11]
Paydays: Restaurant manual workers are usually paid weekly, within 7 days after the week ends. Office staff at least twice a month.[12][13]
Paying tips on a payroll card
- Allowed?Depends
- Worker consent needed?Yes
- Free way to get the money?State ruleFull wages free, a no-cost ATM nearby, written consent 7 business days before the first card pay, and a cash or check option.[6]
- Must you offer another option?YesWithout consent to a card or direct deposit, pay is by cash or check.[6]
- Holding cash tipsState ruleEmployees may voluntarily ask employers to hold cash tips until same-period wage payment; this cannot be an employment condition. Daily records and separate tip/wage statements are required.[2]
- Tips shown on the pay stubYesCard tips the employer pays out, and any cash tips it holds, show separately from wages. The tip credit is itemized too.[1][2]
Ferry Pay: each tip share, paid out digitally
Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.
Who it's for Operators who want to stop the nightly cash run
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
10Records
Records and notices in New York
Keep each tipped worker's tips and hours on record, shift by shift. New York: at least 6 years for payroll, tip-pool records, gratuity charges and signed pay notices.
New York State
- Tip records Weekly payroll with tip credits, daily cash and card tip logs, pool shares and payouts. Pool members can review pool records.[1]
- How long to keep them At least 6 years for payroll, tip-pool records, gratuity charges and signed pay notices.[1]
- Tip credit notice Required. Written notice of rates, tip credit and payday, in English and the worker's language if a template exists. Signed copy kept 6 years.[1]
- Posters and forms Hospitality minimum wage poster; Tip appropriation and illegal deduction notices; Written pay rate/credit/payday notice.[1]
Everywhere Federal
- Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[3]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[14]
- Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[3]
- A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
Think your tips were handled wrong in New York?
Workers in New York can file a tip or wage claim with the New York State Department of Labor, Division of Labor Standards (888-525-2267). Filing is free, and this page can't settle a dispute; the state can.[15]
- Phone
- 888-525-2267[15]
- Website
- dol.ny.gov
Retaliation: No punishment for reporting labor violations. Lost pay, penalties and damages may be available.[16]
Penalties: Back wages, interest, usually 100% liquidated damages, and civil penalties up to 200%. A 2025 law limits some pay-timing claims.[17][18]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedEmployer losses can't come out of wages or tips.[5][1]
- BreakageNot allowedEmployer losses can't come out of wages or tips.[5][1]
- Register shortagesNot allowedEmployer losses can't come out of wages or tips.[5][1]
- UniformsNot allowedRequired uniforms can't be paid from tips. Separate state uniform allowance rules apply.[1]
- Card processing feesAllowedOnly the actual card fee on the tip.[1]
- A manager's shareNot allowedEmployers can't keep workers' tips.[3]
11Law changes
What changed in New York tip law, and what's coming
No statewide increase with a published amount is on file for New York as of .
No changes to New York tip or wage rules on file for the last 24 months.
Bills and ballot measures
Nothing pending as of .
Key statutes
- Labor Law 196-d
- 12 NYCRR 146-1.3, 1.4, 2.1–2.20
- Labor Law 191 and 198
- 12 NYCRR 192: payroll cards
2027
No raise on January 1, 2027
New York's minimum was set to rise with inflation in 2027. A statutory off-ramp blocked it, so the $16.00 and $17.00 rates stay put.[8]
12FAQ
New York tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about New York tip law, each linked to its source.
What is New York's tipped minimum wage?
Does New York's minimum wage go up in 2027?
No. The state labor department says rates stay at $16.00 and $17.00 on January 1, 2027, because an inflation off-ramp blocked the scheduled raise.[8]
How much side work kills the tip credit?
Two hours of non-tipped work, or more than 20% of the shift, whichever comes first. Either one wipes out the credit for the whole day.[1]
Can cooks join a tip pool in New York?
No. Only food-service workers who serve guests directly can share. Kitchen-only cooks and dishwashers don't qualify.[1]
Is a service charge a tip in New York?
Usually yes. An extra service charge is presumed to be a tip unless it's properly disclosed as an administrative charge.[1]
Can card fees come out of tips?
Only the card fee on the tip itself. The cost of processing the food bill can't land on the worker.[1]
Can a worker refuse a payroll card?
Yes. Written consent is required, and a worker who says no to a card and direct deposit gets cash or a check.[6]
When is final pay due?
By the next regular payday, whether the worker quits or is fired.[11]
13Compare
How New York compares with nearby states
New York borders Connecticut, Massachusetts, New Jersey, Pennsylvania, Vermont and Rhode Island. Connecticut pays a higher minimum wage than New York's $16.00. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
- Connecticut tip laws$16.94 min wage $6.38 tipped cash wage Above $2.13
- Massachusetts tip laws$15.00 min wage $6.75 tipped cash wage Above $2.13
- New Jersey tip laws$15.92 min wage $6.05 tipped cash wage Above $2.13
- Pennsylvania tip laws$7.25 min wage $2.83 tipped cash wage Above $2.13
- Vermont tip laws$14.42 min wage $7.21 tipped cash wage Above $2.13
- Rhode Island tip laws$16.00 min wage $3.89 tipped cash wage Above $2.13
States with the same rules
Same tip credit class as New York: Tip credit, cash wage above federal.
- District of Columbia tip laws$18.40 min wage $10.30 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Florida tip laws$15.00 min wage $11.98 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Arizona tip laws$15.15 min wage $12.15 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Illinois tip laws$15.00 min wage $9.00 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Missouri tip laws$15.00 min wage $7.50 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- South Dakota tip laws$11.85 min wage $5.925 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
The law decides who's in. Ferry runs the split.
See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own New York setup.
14Sources
Sources for New York tip laws
Every figure on this page links to one of these 18 sources: 15 for New York and 3 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Hospitality Industry Wage Order CR 146New York State Department of Labor · Official source · Page updated · Checked Pinpoint: 146-1.3(b)(3), physical p. 6; 146-2.2(a), p. 20; 146-2.11, p. 23forms.labor.ny.gov/WP/CR146.pdf
What the source says
“$10.70 Cash Wage, $5.30 Credit, $16.00 Total on and after January 1, 2026.”
“The notice shall also state that extra pay is required if tips are insufficient to bring the employee up to the basic minimum hourly rate.”
“Any employees whom an employer designates learners, trainees, or apprentices must nonetheless be paid at least the minimum rates prescribed in this Part.”
- 2Tips and Gratuities Frequently Asked QuestionsNew York State Department of Labor · Official source · Page updated · Checked dol.ny.gov/system/files/documents/2025/01/tips-and-gratuities-frequently-asked-questions.pdf
What the source says
“When tips are given by customers via credit card, the employer must pay the employee the amount due no later than the next regularly scheduled pay day.”
“A request by an employee for the employer to provide this service must be voluntary.”
“An employer remitting tips to an employee must include a breakdown between the tips and the wages on the employee's wage statement”
- 3Fact Sheet 15 Federal Tipped EmployeesU.S. Department of Labor · Official source · Checked Pinpoint: Employers, Including Managers and Supervisors; Tip Credit, paragraph 2www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.”
“An employer may not receive tips from such a tip pool and may not allow managers and supervisors to receive tips from the pool.”
“An employer must pay a tipped worker at least $2.13 per hour under the FLSA.”
- 4Barenboim v. Starbucks Corp., 21 N.Y.3d 460New York State Law Reporting Bureau · Corroborating source · Page updated · Checked www.nycourts.gov/reporter/3dseries/2013/2013_04754.htm
What the source says
“But an employee granted meaningful authority or control over subordinates can no longer be considered similar to waiters and busboys within the meaning of section 196-d and, consequently, is not eligible to participate in a tip pool.”
- 5Illegal DeductionsNew York State Department of Labor · Official source · Checked Pinpoint: Prohibited deductionsdol.ny.gov/illegal-deductions
What the source says
“Breakages Cash shortages Fines Losses to the business”
- 6Payroll Debit Cards for EmployersNew York State Department of Labor · Official source · Checked Pinpoint: Notice and Consent; Payroll Debit Cardsdol.ny.gov/bizrequired/wages/payrolldebit
What the source says
“To pay an employee by payroll debit card, employers must receive the employee’s written consent.”
“The employee can use the payroll debit card to withdraw their wages in full, with no fees.”
“If an employee does not consent to receive wages by payroll debit card or direct deposit, the employer must pay them by either check or cash instead.”
- 7Minimum Wage for Tipped Workers P717New York State Department of Labor · Official source · Page updated · Checked Pinpoint: Average tips per hour table; 2026 hospitality tabledol.ny.gov/system/files/documents/2025/12/p717_12-25.pdf
What the source says
“$3.65 $3.65 $3.40”
“From January 1, 2026 through December 31, 2026”
- 8Minimum Wage current 2027 off-ramp noticeNew York State Department of Labor · Official source · Page updated 2026 · Checked Pinpoint: 2027 off-ramp preserves 2026 regional amounts; Regional tipped cash tabledol.ny.gov/minimum-wage
What the source says
“$17.00 per hour in New York City, Long Island, and Westchester County”
“$11.35 Cash Wage”
“$13.30 Cash Wage”
- 9Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
What the source says
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
- 10Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
What the source says
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
- 11Wages and Hours FAQsNew York State Department of Labor · Official source · Checked Pinpoint: Termination wagesdol.ny.gov/node/6461
What the source says
“When employment has ended, the employer must pay the wages by the regular payday for the pay period worked.”
- 12Frequency of PayNew York State Department of Labor · Official source · Checked Pinpoint: Frequency of Paydol.ny.gov/node/7016
What the source says
“New York State Labor Law requires manual workers to be paid weekly, and clerical and other workers at least twice per month.”
- 13Labor Law 191 Frequency of PaymentsNew York State Senate · Official source · Page updated · Checked www.nysenate.gov/legislation/laws/LAB/191
What the source says
“A manual worker shall be paid weekly and not later than seven calendar days after the end of the week in which the wages are earned”
- 14Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
What the source says
“Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”
“Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”
“Records on which wage computations are based should be retained for two years,”
- 15Unpaid Withheld Wages and Wage SupplementsNew York State Department of Labor · Official source · Checked Pinpoint: Claim assistancedol.ny.gov/unpaidwithheld-wages-and-wage-supplements
What the source says
“888-525-2267.”
- 16Wages and PayNew York Attorney General · Official source · Checked Pinpoint: Retaliationag.ny.gov/resources/individuals/workers-rights/wages-pay
What the source says
“It is against the law for your employer to retaliate against you, or punish you in any way, for reporting violations.”
- 17Minimum Wage Information for EmployersNew York State Department of Labor · Official source · Checked Pinpoint: Penaltiesdol.ny.gov/minimum-wage-information-employers
What the source says
“minimum wage underpayments and liquidated damages PLUS interest and civil penalties up to 200 percent of the unpaid wages.”
- 18Labor Law 198 Costs and RemediesNew York State Senate · Official source · Page updated · Checked Pinpoint: LAB 198(1-a), 2025 revisionwww.nysenate.gov/legislation/laws/LAB/198
What the source says
“Liquidated damages shall be calculated by the commissioner as no more than one hundred percent of the total amount of wages found to be due,”
15Methodology
How we research these pages
Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.
- 1
Official sources only
Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.
- 2
Every figure is linked
Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.
- 3
Re-checked on a schedule
Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.
- 4
Gaps are left out, not guessed
If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.
What changed on this page
- First version of this page. Every figure was checked against the official sources listed on this page.
Researched by Ferry's tip operations research team. Last reviewed .
Changes to the law itself are listed in What changed and what's coming.
16Every state
Tip laws in every state
Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.
- No tip creditNo tip credit
- Above $2.13Tip credit, cash wage above federal
- $2.13 cashTip credit, federal cash wage
- FederalFederal rates apply
51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.